Theatre Design & Technology - Feb 1966 - 17

measuring income and possible income of active
theatres, and these theatres tend to be occupied by
the strongest shows- those that can survive through
the summer. The figures for both seasons do reveal
that actual income increases during August and
September. Thus, attendance picks up before new
shows come to Broadway. October is the most
popular month for openings, followed in order by
December, November and February. With the dark
theatres excluded from consideration we sti II find
that the industry was able to achieve only 78.36%
and 71.96% of its possible gross for 1959-60 and
1960-61 respectively. Once we include the dark
theatres in the pi cture the fi gures become even
more sobering, and demonstrate further how inelastic
the demand schedule for tickets really is.

GRAPH 8: Percentage of Utilization of "Active"
Capac: ity; Broadway Shows, Monthly for 1959·60 and
1960-61. 16

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The problem in computing a dollar-capacity figure
for all theatres is accurate assignment of a value
to the idle plants. Our approach is to use the maximum gross figure for the previous show. In this way
as praductions enter and leave theatres the figure
is adjusted. The results for both 1959-60 and
1960-61 are presented in Graph 9. The figures are
again compi led on a weekly basi s, with a year-end
figure also computed for each Sf'':lson. The year
1959-60 saw 57.01% of possible income achieved
and 1960-61 was able to reach only 50.72% of
capacity. As we might expect, inclusion of the
dark theatres brings about a closer correlation
between weekly utilization and the high points of
the season's attendance, number of shows running,
and actual incame. Also, including the dark theatres
makes the swing in activity appear even greater,
moving from 38.13% in the last week of July to
80.19% in the New Year's week in the 1959-60
season.
Although weekly figures were not computed for
the utilization of seating capacity, seasonal figures
were
determined. 18 Actual
attendance figures
(presented above) can be compared to the maximum
possible seating capacity of all theatres on Broadway based on an eight-performance week for the
entire 52-week season. This was done, and the
resulting figure was 58.6~ in 1959-60, with 51.31"0
of the seats filled in 1960-61. Both dollar and
attendance figures emphasize clearly that theatres
are highly under-used pieces of real estate. Our
analysi s of demand for theatre as a product indicates
as well that the industry cannot afford the luxury of
filling all the available seats. To fill the seats,
by the means available, means lowering one's
income.

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GRAPH 9: Percentage Utilization of Total Capacity; Broadway Shows, Monthly 1959·60 and 1960-61. 17

February 1966

The seasonable nature of the industry also sheds
more light on the interrelated questions of price,
income and attendance. During the peak of the
season there is little incentive to lower price to
increase attendance even further. A fortunate few
only wish they could expand their four walls to
allow their halls to seat more people. As the season
fades, the strong shows continue to enjoy heavy
attendance and may even reach peaks in the summer
doldrums of July and August. Pri ce reductions wi II

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